TOP 3 MARKET EVENTS IN UPCOMING WEEK 04 October 2021

U.K. Composite Purchasing Managers’ Index (PMI)

 WHEN:                                                                WHAT IT INFLUENCES:

 5 th OCTOBER 2021                                             GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING:

The Composite PMI Index measures the activity level of purchasing managers in both sectors. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

U.S. Crude Oil Inventories

WHEN:                                                                 WHAT IT INFLUENCES:

6th OCTOBER 2021                                         USD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

The Energy Information Administration’s (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation.

If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected.

If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected.

U.K. Construction Purchasing Managers Index (PMI)

WHEN:                                                               WHAT IT INFLUENCES:

6th OCTOBER  2021                                         GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 

The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the construction industry. A reading above 50 indicates expansion in the construction industry; a reading below indicates contraction. It gives an indication about the health of the construction section in the UK. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.